Well, I got stopped out of my position in SAVE today. Very unhappy with how it played out and it should be a learning experience. Symbol: SAVE (LONG) Date Entered: 4/27/16 Price Entered: $46.96 # of shares: 79 Total Investment: $3,709.84 Stop set: $44.00 (MAX RISK $232.56 - 3%) Target set: $53.00 Date Exited: 4/29/16 Price Exited: $43.94 Total Return: $3,471.26 % Return: -6.43% Profit (after $20 total trading fees): -$258.58 Immediate Thoughts: I entered this trade because SAVE had a positive earnings report, but closed the day down 4.34%. There was almost nothing at all I liked about the chart, I was just semi-bullish on airlines short-term and didn't think the stock would stay DOWN on POSITIVE earnings above estimates. That was almost the only reason I made the trade, even though there were no indicators that really prompted me to make the trade. In the future I will avoid making decisions like this when there are no indicators that a stock will jump up. If earnings says one thing, and the stock does something else, there's probably a reason for it and I shouldn't try to play the bounce unless there are other indicators besides earnings to suggest an entry.
@T0rm3nted ouch...still paper trading I hope. When I 1st started trading options, I couldn't stay away from earnings plays. Made some, lost some, but in the end, I ended up blowing my account trying to trade them. I don't trade earnings anymore.
Yep, still only paper trading. Good lesson to learn before it actually took any of my real money. Still treating this as if it's my actual account though in order to emulate how it will happen when I start trading for real. So far it is my only loss though of the 5 positions I've closed. It was only a $258 loss and I've had two positions that closed for a combined $2,145 (SKX, FCAU). I will be staying out of the market for another few months when I start trading using my 401K (fairly conservatively for an absolute max loss of 5% - keep in mind I'm only 27 so it won't hurt that bad, and most plays will be less than that - not to mention my company adds 6.4% for me to the 401K and that's out of the goodness of their hearts, not even as a match).
@T0rm3nted Yeah I noticed you've been doing quite well with the paper account. It's a little different with a real account, but if you can continue to make gains, then there's no reason not to try with a small amount in the real account....good luck!
I know what you're saying. Psychologically it will be different when it's for real money, but as long as I can stick to my same strategies that are making money and leave emotion out of it, then there's no reason not to start making a few small plays to see how I handle it. Again, easier said then done to leave emotion out of it and stick to the trade plan.
Weekly update on open positions (total gain/loss since position was started): LONG plays: GE: Entry price $30.89. Current price $30.89. +0.00% LB: Entry price $77.50. Current price $79.54. +2.63% ATVI: Entry price $34.49. Current price $34.58. +0.26% TWTR: Entry price $14.92. Current price $14.40. -3.49% DIS: Entry price $104.14. Current price $104.36. +0.21% SHORT plays: WY: Entry price $31.85. Current price $32.28. -1.35% SPLS: Entry price $11.30. Current price $10.38. +8.14%
Monthly update on closed positions (April 2016): LONG plays: FCAU: Entry price $6.90. Exit price $8.05. +16.67% SKX: Entry price $26.03. Exit price $33.51. +28.74% CMG: Entry price $438.95. Exit price $442.10. +0.72% SAVE: Entry price $46.96. Exit price $43.94. -6.43% SHORT plays: ACAD: Entry price $33.05. Exit price $32.86. +0.57%
Will be entering into a trade in KBH tomorrow if the stock opens at the closing price from today (or very close). The 50MA just crossed over the 200MA and the stock appears to be riding the 50MA upwards right now. I'll have a tight stop set under the 200MA at about $13.20ish. I think it's more likely this rides up to ~$15 then dropping below the bullish MA crossover.
KBH opened a bit below yesterday's close so I did not enter the trade. My position in WY was closed today after meeting my adjusted target price. Will post details later today or tomorrow.
Symbol: WY (SHORT) Date Entered: 4/13/16 Price Entered: $31.85 # of shares: 174 Total Investment: $5,541.90 Stop set: $33 (MAX RISK $400) Target set: $33.00 (originally) Date Exited: 5/3/16 Price Exited: $31.71 Total Return: $5,517.54 % Return: +0.44% Profit (after $20 total trading fees): +$4.36 Immediate Thoughts: I entered this trade because the stock was sitting at resistance, RSI said overbought, and MACD was just crossing over. As time went on, the stock just sat at the same level, and actually went up slightly over time. I got more and more uncomfortable with it as the 50MA crossed over the 200MA and RSI dropped out of the overbought area. I lowered my target price to lock up any small profits I could and get out before earnings, just in case the stock decides to jump. My exit was a little early as the stock dropped 1.7% below my actual exit. Similar to my position in ACAD, as I held the position longer I got more and more uncomfortable. I seem to have trouble holding SHORT positions for a long period of time, moreso than LONG positions. It could be simply because both positions were consolidating between my entry price and my stop prices, or because I was shorting positions in a BULL market.
My bid of $1.25 got hit and I'm now in VKTX. Symbol: VKTX (LONG) Date Entered: 5/4/16 Price Entered: $1.25 # of shares: 1624 Total Investment: $2,030 Stop set: $1.10 (MAX RISK $243.57 - 3%) Target set: $2.00
Nice work. In addition to my actual trading, I also have a "paper-trading" portfolio too to try new strategies. I tend to be more aggressive with my paper trading portfolio and hold it for longer periods in average. Funny thing, my paper-trading portfolio performs even better than my actual portfolio. For my paper trading I use an app named "stock wars" which helps to keep track of my "fake" portfolio and see live updates. So check it out if you think it can help you as well. Also, I noticed you are charging yourself $20 for each trade. Keep in mind that you can save some costs by using Robinhood with your Long positions.
Good point. I currently do have access on my LONG trades in my 401K which will have a $10 trading fee ($10 for buy + $10 for sell) as well. I am trying to mimic my trade setting like I will when I start trading with that. Maybe when I get out of student loan debt (at the end of this year) and put some money onto some online broker, I can lower that fee, but for now I'm trying to keep it equal. Also, like you said, the emotional and simple fact that it's "paper" could affect my trading, so I'm trying to eliminate that and treat it like it's actual money. I plan to start reaching into my 401K pretty soon.
Well, I just took one on the chin and got stopped out of my position in LB when it opened down like 8%. Will post details shortly.
Symbol: LB (LONG) Date Entered: 4/12/16 Price Entered: $77.50 # of shares: 80 Total Investment: $6,200.00 Stop set: $75.00 (MAX RISK $200) Target set: $86.00 Date Exited: 5/5/16 Price Exited: $73.52 Total Return: $5,881.60 % Return: -5.14% Profit (after $20 total trading fees): -$338.40 Immediate Thoughts: I entered into this trade because the stock was appearing to bottom on large volume, was oversold, and started to head back up. The price drop looked eerily similar to the drop in February so I was hoping to see the same pattern and a run up to $86-$88. It was on it's way back up and just closed over $80 yesterday. I wasn't paying close enough attention, and the April sales numbers came in poor and the stock plummeted over 8% to open the day (currently down over 10%). I'm not sure if I would have done anything differently. I've stayed in stocks through earnings/sales numbers and made a lot, and in this one it just happened to go the other way. I lost more than my "max risk" was set to, but that will happen when you take risks and stay in positions through earnings/etc.
I currently have open positions in ATVI and DIS which report earnings today after close and Monday respectively. I will be holding both through earnings.
Weekly update on OPEN positions (total gain/loss since position was started): LONG plays: GE: Entry price $30.89. Current price $30.12. -2.49% ATVI: Entry price $34.49. Current price $34.58. +0.26% TWTR: Entry price $14.92. Current price $14.40. -3.49% DIS: Entry price $104.14. Current price $105.54. +1.34% DIS: Entry price $1.25. Current price $1.24. -0.80% SHORT plays: SPLS: Entry price $11.30. Current price $10.26. +9.20% -------------------------------------------- Weekly update on CLOSED positions this week: LONG plays: None closed this week SHORT plays: WY: Entry price $31.85. Exit price $31.71. +0.44% --------------------------------------------- Things I'm currently watching closely next week and in the near future: DIS earnings report Tuesday after close + opening weekend numbers for the new Civil War movie on Monday. I currently have an open position in DIS and am hoping for and expecting a positive impact from both reports on Monday and Tuesday. SPLS earnings on the 18th. I do not think this struggling company will have a good earnings report and we could approach my target price of $9 per share (from the $10.26 it's closed at this week). If there are rumors or news in regards to the earnings report being positive, I'll probably lock up my profits on this one. ATVI to continue heading up to my target price of ~$39.50 (currently up in my position +9.80%). I may consider locking up some if I get some indication that it's going to go back down instead of continuing upwards after positive earnings last night. TWTR to close over $15 next week. FCAU to head back down to the lower $7 range for another swing trade up to $8. SKX to continue heading back down to the $26 range for another swing trade up to $34. LB to cool down and start another uptrend to close the gap back to ~$80 after dropping purely from Victoria's secrets sales numbers (which were positive but below expectations), and only Victoria's secret reported as part of LB, not ALL of LB. Any positive news for financials could convince me to start a position in BAC, as I was already considering it near $15 and now it's down in the low $14's. I could see a BULL market and some positive news taking this up to $18. A possible entry into AMD if I can get a good price to jump in.
I think I will be closing my position in Staples on Monday. The potential deal with SPLS and Office Depot is getting closer. It could make a huge jump either way, and I find it best not to gamble on a coin flip when I could lock up 9%+ profit. I'll find a better spot than this coin flip.
Opened up a position in KMI today at the open. It's been trading in a channel between $17 and $19 for almost 3 months and bounced off both $17 and $19 multiple times. Looks like a fairly safe play that should be pretty quick. Symbol: KMI (LONG) Date Entered: 5/10/16 Price Entered: $17.08 # of shares: 393 Total Investment: $6,712.44 Stop set: $16.40 (MAX RISK $239.70 - 3%) Target set: $19.03 (TARGET GAINS $746.35 - 11.42%)
